KEY POINTS
- CCP approves BBE D Pte. Ltd.’s majority stake acquisition in Euro Gas (Pvt.) Ltd.
- Euro Gas, incorporated in 2022, aims to enter Pakistan’s LNG market
- Sellers to retain minority shareholding post-transaction
ISLAMABAD: Pakistan’s competition regulator has cleared the acquisition of a majority shareholding in Euro Gas (Private) Limited by Singapore-based BBE D Pte. Limited, a wholly owned subsidiary of global energy trader BB Energy Group Holding Limited.
According to a statement issued by the Competition Commission of Pakistan (CCP), the transaction is being executed under a Share Purchase and Share Subscription Agreement, with the existing owners of Euro Gas retaining a minority stake after the deal.
Euro Gas, incorporated in 2022, has not yet commenced commercial operations but intends to enter the liquefied natural gas (LNG) market subject to regulatory approvals.
Transaction impact on market structure
The CCP said its comprehensive review found no concerns that the deal would substantially lessen competition.
Since Euro Gas has not yet entered the market, the transaction is not expected to create or strengthen a dominant position in LNG import and distribution.
Competition and diversification in the LNG sector
The Commission further observed that Euro Gas’s entry could enhance competition and diversify supply options in Pakistan’s LNG sector, which was currently dominated by state-owned companies.
Analysts told Business Recorder that additional private participation could potentially improve supply resilience and pricing efficiency in the medium term.
The CCP concluded that the acquisition aligns with its mandate to facilitate market efficiency while ensuring fair competition, authorising the proposed transaction accordingly.
